Verafin, the St. John’s startup whose software fights financial crimes, has received a $6 million non-repayable loan from the government of Newfoundland and Labrador to help increase its workforce.
The government said Tuesday the loan would help to create about 90 jobs with the company, which employed 200 people as of the summer of 2014. Verafin and Spectrum Equity, a private equity fund based in Boston and Silicon Valley, will invest $4.8 million in the expansion project.
The money from the provincial government will not have to be repaid as long as Verafin creates the 90 jobs over a five-year period.
“Continuous improvement is key to keeping a step ahead of financial crime, so we strive to find the very best and brightest developers and engineers to further advance our solution,” Raymond Pretty, Verafin’s Vice-President of Development, said in the statement.
Founded in 2003, Verafin develops software that helps financial institutions detect and prevent money laundering and fraud. The company has more than 1200 enterprise clients and experienced 45 percent revenue growth last year. Also last year, the company attracted $60 million of investment from Spectrum, which took a significant minority in the company.
It is a graduate of Memorial University’s Genesis Centre, a facility which provides incubation services for new technology-based startups.
The government’s most recent budget includes about $44.4 million to support start-up businesses, emerging growth sectors, and regional development activities. This includes $13.5 million for initiatives to attract business to Newfoundland and Labrador.